Global asset managers fret over regulation -survey

LONDON, July 7 (Reuters) - Global asset managers see
regulatory change as the biggest risk for their businesses over
the next 12 months, State Street said on Tuesday.

In a survey of 400 managers in Asia, Europe and North
America, 32 percent cited regulatory risk as highly likely to
increase, compared with 21 percent for market risk, even as
ructions in Greece and China dominate headlines.

Fifty-nine percent of those surveyed were planning to raise
their investment in regulatory compliance, State Street data
released to Reuters showed.

The global Financial Stability Board (FSB) is due to publish
final rules for regulating so-called systemically-important
asset managers by the end of this year, and the plans have been
fiercely criticised by the industry for earmarking funds for
greater supervision simply because of their size.

IOSCO, the world's umbrella body for market regulators, said
last month it would launch an immediate full review of potential
risks from asset management activities and products, throwing
into doubt the planned rules.